Best Credit Cards To Build Credit in May 2025

• Access to loans and credit

  When you build a positive credit history, lenders are more likely to approve your applications for loans, credit cards and other forms of credit. This access can be essential for financing major expenses such as buying a home, purchasing a car or paying for college.

• Lower interest rates

  A good credit score can lead to lower interest rates on loans and credit cards. This translates to lower monthly payments and less money paid in interest over the life of the loan, potentially saving you thousands of dollars.

• Financial flexibility

  Building credit provides you with the flexibility to manage unexpected financial needs. Having a line of credit available can help cover emergencies or unexpected expenses without resorting to high-interest options.

• Renting a home

  Many landlords and property managers use credit checks to assess the reliability of potential tenants. A solid credit history can increase your chances of securing a rental property, as it demonstrates your ability to meet financial obligations.

• Employment opportunities

  Some employers may consider your credit history as part of their hiring process, particularly for positions that involve financial responsibilities. A positive credit history could improve your chances of landing your dream job.

• Better insurance premiums

  In some cases, insurance companies may use credit scores to determine insurance premiums. A higher credit score could lead to lower insurance costs over time.

 

The best way to build credit with a credit card is to use your card regularly and responsibly. Here are a few other tips on how to use a credit card to build credit:

1. Make on-time payments
2. Pay your balance in full each month
3. Keep your credit utilization below 30%
4. Monitor your purchases and stay on top of spending
5. Only apply for a credit card when it’s truly needed
6. Consider diversifying your credit mix
7. Track your credit score progress along the way

 

• Secured credit cards

  With a secured credit card, you deposit cash to secure a credit limit that’s usually equal to your deposit. Some cards let you transition to an unsecured card or offer automatic credit limit increases after you’ve used your card responsibly. Our pick for the best secured card to build credit is the Discover it^® Secured Credit Card.

• Student credit cards

  The approval requirements for student credit cards and credit cards for teens are generally lower than regular credit cards, making them a good option for college students. These cards may offer cash back or other types of rewards geared toward students. Our pick for the best student card to build credit is the Bank of America® Travel Rewards Credit Card for Students.

• Gas credit cards

  Gas credit cards offer either rewards on gas station purchases or a fuel discount. They are often easier to get approved for, making them a viable option for building credit. Our pick for the best gas card to build credit is the Bank of America® Customized Cash Rewards Secured Credit Card.

• Store credit cards

  Many retailers offer store-specific credit cards which can only be used within the brand of stores. Like gas cards, store cards are generally easy to get and will offer perks specific to that retailer. Our pick for the best store card to build credit is the Amazon Secured Card.

 

When choosing a credit card to build your credit, it’s important to first define your goal. If you’re new to credit and looking to establish a strong credit score, there are options available, such as the Chase Freedom Rise® Credit Card, even if you have no credit history. On the other hand, if you have a low credit score and want to improve it, consider a secured card like the Discover it^® Secured Credit Card.

Here are a few other key strategies to consider when choosing a credit card to build credit:

• Focus on cards designed for individuals with limited or no credit history, often known as “starter credit cards.” These cards are more likely to have no annual fees and reasonable interest rates, making them an excellent choice for beginners.
• Opt for a card with a manageable credit limit, such as a secured credit card. This will help you keep your credit utilization ratio low, which positively influences your credit score.
• Choose a card from an issuer that reports your payment activity to all major credit bureaus. Reporting ensures that your responsible credit behavior is accurately reflected in your credit reports.
• Prioritize cards with minimal fees and clear terms over flashy perks. This will help you concentrate on strengthening your credit profile, rather than trying to spend enough to earn a free hotel stay or sign-up bonus.

 

 

Building credit isn’t a linear path, and your credit score can fluctuate from month-to-month. In addition to following the best practices on building credit, you can take additional steps. They aren’t necessary but can help build credit, especially if you’re just starting out or have bad credit.

1. Become an authorized user on a credit card. One of the pros of being an authorized user on a credit card is that it allows you to piggyback on another person’s good credit score.

   “Adding my husband as an authorized user on my oldest credit card took him from having no credit score to a 798 credit score in less than a year. However, this alone wasn’t enough for him to be eligible for an unsecured credit card, so he opened a secured credit card to further build his credit history and report.”

   – Charlotte Zhang, credit cards writer at LendingTree

2. Take out a credit builder loan or personal loan. A small, short-term loan can help build credit and provide you with funds to do your own debt consolidation with a personal loan. A LendingTree Study found that reducing overall debt contributed to people raising their credit score by 100 points or more.
3. Use a student loan or auto loan. These are more specific than a personal loan, but if you need a new car and are trying to build credit, consider a loan so that your payment history gets reported to the credit bureaus.
4. Improve your credit utilization. If you currently have debt, paying down those balances will reduce your credit utilization, which is the percentage of available credit you are using. Credit scoring models weigh utilization heavily, and the lower yours is, the better. Aim to get your utilization under 30% (for example, under $300 if you have a $1,000 credit limit), and as close to zero as possible.

 

As you establish credit or rebuild your score, you’ll be able to qualify for cards with better rewards, lower interest rates and more favorable terms. Here’s what you can do after building your credit:

1. Upgrade to a different card with the same issuer. Some issuers even allow you to upgrade or switch to another card without impacting your credit score. For example, the Chase Freedom Rise® Credit Card has automatic annual evaluations to upgrade to Chase Freedom Unlimited^®.
2. Keep your current card and apply for another with a different issuer. It’s generally better to keep your card open, as closing it could hurt your credit score. You can set up a recurring payment on your card to keep it open and apply for a new card with better benefits and rewards.
3. Close your card and look for a new card with a different issuer. If you have a secured credit card with no path to upgrade, you may have to close the account in order to get your security deposit back.